Note 6 - Income Taxes

12 Months Ended

Mar. 31, 2016

6 .	INCOME TAXES

Components of tax expense (benefit) are as follows:

	Year Ended March 31
	2016			2015
Federal
Current	$	274,947		$	519,271
Deferred		(221,144	)		(377,356	)
		53,803			141,915
State
Current		50,878			161,571
		50,878			161,571
Total	$	104,681		$	303,486

The U.S. federal statutory income tax rate is reconciled to the effective rate as follows:

	Year Ended March 31
	2016			2015
Income tax expense at U.S. federal statutory rate		34.0	%		34.0	%
Benefit of tax deduction allowed to manufacturing companies		(6.6	)		(7.0	)
Current year state and local income taxes net of federal income tax benefit		8.4			7.3
Other		(9.5	)		10.0
Provision for income taxes		26.3	%		44.3	%

The Company’s tax returns may be subject to examination by the Internal Revenue Service for the fiscal years ended March 31, 2013 through March 31, 2015. State and local returns may be subject to examination for fiscal years ended March 31, 2012 through March 31, 2015.

Deferred income taxes are provided for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s consolidated deferred tax assets (liabilities) are as follows:

	March 31
	2016			2015
Deferred tax liabilities:
Depreciation	$	(871,665	)	$	(1,231,047	)
Total deferred tax liabilities		(871,665	)		(1,231,047	)
Deferred tax assets:
Inventory capitalization		179,956			201,094
LIFO Inventory		783,645			783,645
Postretirement benefits other than pensions		267,104			370,562
Other		49,462			63,104
Total deferred tax assets		1,280,167			1,418,405
Net deferred tax asset	$	408,502		$	187,358